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Group 5 bad debt (loans overdue >360 days) is expanding as banks report NPL ratios up to 1.13%, signaling tighter credit risk for lenders.
Group 5 bad debt—loans overdue more than 360 days—has continued to grow, with banks such as Agribank reporting non‑performing loan (NPL) ratios that now sit at 1.13% %[2] — a level that includes a larger share of these deep‑overdue assets. The rise adds pressure on banks’ risk‑management frameworks and could influence future lending standards.
| At a glance | |
|---|---|
| Group 5 definition | Loans overdue > 360 days [2] |
| Agribank NPL ratio | 1.13 % (includes Group 5) [2] |
| ABBank NPL ratio | 0.55 % (low, but overall NPL) [1] |
| Market reaction | No immediate index move reported |
Vietnam’s credit information centre (CIC) classifies debt that is more than 360 days past due as Group 5, the most severe category of bad debt [2]. While the CIC does not publish aggregate figures, individual banks disclose their overall NPL ratios, which serve as a proxy for the share of deep‑overdue loans. Agribank’s latest report shows an NPL ratio of 1.13 %, the highest among the banks highlighted, suggesting a notable presence of Group 5 assets [2]. By contrast, ABBank reports a much lower NPL ratio of 0.55 %, indicating tighter credit quality within its portfolio [1].
The persistence of Group 5 debt raises concerns for lenders’ capital buffers. Higher proportions of deep‑overdue loans can erode profitability and may compel banks to set aside additional provisions, as seen in the broader industry trend of rising loan‑loss reserves [1]. Moreover, the elevated NPL levels could tighten credit conditions for borrowers, especially those with weaker credit histories, since banks may become more selective in extending new loans.
The continued rise of Group 5 bad debt underscores a tightening risk environment for Vietnamese banks, prompting close monitoring of credit‑quality metrics and regulatory responses.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jul 30, 2026 · How we report
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